E | F | |||
Book | Tax | Book | Tax | |
$10,000 | $4,000 | $10,000 | $10,000 | Initial contribution. |
[LESS THAN]500[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]500[GREATER THAN] | [LESS THAN]400[GREATER THAN] | Depreciation. |
350 | 350 | 350 | 350 | Sales income. |
9,850 | 4,350 | 9,850 | 9,950 |
E | F | |||
Book | Tax | Book | Tax | |
$10,000 | $4,000 | $10,000 | $10,000 | Initial contribution. |
[LESS THAN]500[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]500[GREATER THAN] | [LESS THAN]400[GREATER THAN] | Depreciation. |
350 | 450 | 350 | 250 | Sales income. |
9,850 | 4,450 | 9,850 | 9,850 |
E | F | |||
Book | Tax | Book | Tax | |
$10,000 | $4,000 | $10,000 | $10,000 | Initial contribution. |
[LESS THAN]500[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]500[GREATER THAN] | [LESS THAN]400[GREATER THAN] | Depreciation. |
350 | 700 | 350 | 0 | Sales income. |
9,850 | 4,700 | 9,850 | 9,600 |
G | H | |||
Book | Tax | Book | Tax | |
$10,000 | $3,000 | $10,000 | $6,000 | Initial contribution. |
[LESS THAN]1,000[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | [LESS THAN]600[GREATER THAN] | G1 depreciation. |
[LESS THAN]1,000[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | [LESS THAN]200[GREATER THAN] | H1 depreciation. |
500 | 500 | 500 | 500 | Operating income. |
8,500 | 2,500 | 8,500 | 5,700 |
G | H | |||
Book | Tax | Book | Tax | |
$10,000 | $3,000 | $10,000 | $6,000 | Initial contribution. |
[LESS THAN]1,000[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | [LESS THAN]600[GREATER THAN] | G1 depreciation. |
[LESS THAN]1,000[GREATER THAN] | [LESS THAN]600[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | [LESS THAN]600[GREATER THAN] | H1 depreciation. |
500 | 500 | 500 | 500 | Operating income. |
8,500 | 2,900 | 8,500 | 5,300 |
J | K | |||
Book | Tax | Book | Tax | |
$10,000 | $1,000 | $10,000 | $10,000 | Initial contribution. |
[LESS THAN]5,000[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]5,000[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | Depreciation. |
4,000 | 4,000 | 4,000 | 4,000 | Sales income. |
9,000 | 5,000 | 9,000 | 13,000 |
J | K | |||
Book | Tax | Book | Tax | |
$10,000 | $1,000 | $10,000 | $10,000 | Initial contribution. |
[LESS THAN]5,000[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]5,000[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | Depreciation. |
4,000 | 8,000 | 4,000 | 0 | Sales income. |
9,000 | 9,000 | 9,000 | 9,000 |
J | K | |||
Book | Tax | Book | Tax | |
$10,000 | $1,000 | $10,000 | $10,000 | Initial contribution. |
[LESS THAN]5,000[GREATER THAN] | [LESS THAN]0[GREATER THAN] | [LESS THAN]5,000[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] | Depreciation. |
4,000 | 4,400 | 4,000 | 3,600 | Sales income. |
9,000 | 5,400 | 9,000 | 12,600 |
L | M | |||
Book | Tax | Book | Tax | |
Initial contribution | $10,000 | $4,000 | $10,000 | $10,000 |
Depreciation | [LESS THAN]3,200[GREATER THAN] | [LESS THAN]800[GREATER THAN] | [LESS THAN]3,200[GREATER THAN] | [LESS THAN]3,200[GREATER THAN] |
$6,800 | $3,200 | $6,800 | $6,800 |
L | M | |||
Book | Tax | Book | Tax | |
End of year 4 | $6,800 | $3,200 | $6,800 | $6,800 |
Depreciation | [LESS THAN]300[GREATER THAN] | [LESS THAN]300[GREATER THAN] | ||
$6,500 | $3,200 | $6,500 | $6,800 |
L | M | |||
Book | Tax | Book | Tax | |
End of year 4 | $6,800 | $3,200 | $6,800 | $6,800 |
Depreciation | [LESS THAN]300[GREATER THAN] | [LESS THAN]300[GREATER THAN] | ||
Remedial allocations | 300 | [LESS THAN]300[GREATER THAN] | ||
$6,500 | $3,500 | $6,500 | $6,500 |
L | M | |||
Book | Tax | Book | Tax | |
End of year 5 | $6,500 | $3,500 | $6,500 | $6,500 |
Depreciation | [LESS THAN]1,500[GREATER THAN] | [LESS THAN]1,500[GREATER THAN] | ||
Remedial allocations | 1,500 | [LESS THAN]1,500[GREATER THAN] | ||
$5,000 | $5,000 | $5,000 | $5,000 |
N | P | |||
Book | Tax | Book | Tax | |
Initial contribution | $10,000 | $4,000 | $10,000 | $10,000 |
Sale of Blackacre | [LESS THAN]500[GREATER THAN] | 5,000 | [LESS THAN]500[GREATER THAN] | |
$9,500 | $9,000 | $9,500 | $10,000 |
N | P | |||
Book | Tax | Book | Tax | |
Initial contribution | $10,000 | $4,000 | $10,000 | $10,000 |
Sale of Blackacre | [LESS THAN]500[GREATER THAN] | 5,000 | [LESS THAN]500[GREATER THAN] | |
Remedial allocations | 500 | [LESS THAN]500[GREATER THAN] | ||
$9,500 | $9,500 | $9,500 | $9,500 |
N | P | |||
Book | Tax | Book | Tax | |
Initial contribution | $10,000 | $4,000 | $10,000 | $10,000 |
Sale of Blackacre | [LESS THAN]3,500[GREATER THAN] | 0 | [LESS THAN]3,500[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] |
$6,500 | $4,000 | $6,500 | $9,000 |
N | P | |||
Book | Tax | Book | Tax | |
Initial contribution | $10,000 | $4,000 | $10,000 | $10,000 |
Sale of Blackacre | [LESS THAN]3,500[GREATER THAN] | 0 | [LESS THAN]3,500[GREATER THAN] | [LESS THAN]1,000[GREATER THAN] |
Remedial Allocations | 2,500 | [LESS THAN]2,500[GREATER THAN] | ||
$6,500 | $6,500 | $6,500 | $6,500 |
Stock 1 | Stock 2 | Stock 3 | Stock 4 | |
Opening Balance | $100,000 | $100,000 | $100,000 | |
Day 2 Adjustment | 2,000 | 5,000 | (2,000) | |
Total | $102,000 | $105,000 | $98,000 | $152,500 |
X | |||
Book | Tax | Revaluation account | |
Opening Balance | $150,000 | $150,000 | 0 |
Day 2 Adjustment | 2,500 | 0 | $2,500 |
Closing Balance | $152,500 | $150,000 | $2,500 |
Y | |||
Book | Tax | Revaluation account | |
Opening Balance | $150,000 | $150,000 | 0 |
Day 2 Adjustment | 2,500 | 0 | $2,500 |
Closing balance | $152,500 | $150,000 | $2,500 |
Z | |||
Book | Tax | Revaluation account | |
Opening Balance | |||
Day 2 Adjustment | |||
Closing Balance | $152,500 | $152,500 | $0 |
Stock 1 | Stock 2 | Stock 3 | Stock 4 | |
Opening Balance | $100,000 | $100,000 | $100,000 | $152,500 |
Day 2 Adjustment | 2,000 | 5,000 | (2,000) | |
Day 3 Adjustment | $3,000 | (3,000) | (2,000) | (1,000) |
Total | $105,000 | $102,000 | $96,000 | $151,500 |
X and Y | |||
Book | Tax | Revaluation account | |
Opening Balance | $150,000 | $150,000 | 0 |
Day 2 Adjustment | 2,500 | 0 | $2,500 |
Day 3 Adjustment | (1,000) | 0 | ($1,000) |
Total | $151,500 | $150,000 | $1,500 |
Gain from Stock 2 | 0 | $1,000 | (1,000) |
Loss from Stock 3 | 0 | ($1,000) | 1,000 |
Closing Balance | $151,500 | $150,000 | $1,500 |
Z | |||
Book | Tax | Revaluation account | |
Opening Balance | $152,500 | $152,500 | 0 |
Day 3 Adjustment | (1,000) | 0 | ($1,000) |
Total | $151,500 | $152,500 | ($1,000) |
Gain from Stock 2 | 0 | 0 | 0 |
Loss from Stock 3 | 0 | (2,000) | 2,000 |
Closing Balance | $151,500 | $150,500 | $1,000 |
Stock 1 | Stock 2 | Stock 3 | Stock 4 | |
Opening Balance | $100,000 | $100,000 | $100,000 | $152,500 |
Day 2 Adjustment | 2,000 | 5,000 | (2,000) | |
Day 3 Adjustment | 3,000 | (3,000) | (2,000) | ($1,000) |
Total | $105,000 | $102,000 | $96,000 | $151,500 |
X and Y | |||
Book | Tax | Revaluation account | |
Opening Balance | $150,000 | $150,000 | 0 |
Day 2 Adjustment | $2,500 | 0 | $2,500 |
Day 3 Adjustment | (1,000) | 0 | (1,000) |
Total | $151,500 | $150,000 | $1,500 |
Net Tax Loss-Stocks 2 & 3 | 0 | (333) | 333 |
Closing Balance | $151,500 | $149,667 | $1,833 |
Z | |||
Book | Tax | Revaluation account | |
Opening Balance | $152,500 | $152,500 | 0 |
Day 3 Adjustment | (1,000) | 0 | ($1,000) |
Total | $151,500 | $152,500 | ($1,000) |
Net Tax Loss-Stocks 2 & 3 | 0 | (1,333) | 1,333 |
Closing Balance | $151,500 | $151,167 | $333 |
26 C.F.R. §1.704-3
For FEDERAL REGISTER citations affecting § 1.704-3 , see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.